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Associated Press
CHARLESTON, W.Va. - Attorney General Darrell McGraw's office has reached a settlement with a San Diego-based credit management company that will result in the cancellation of more than $3.5 million in credit card debt allegedly owed by $3,500 West Virginia consumers, McGraw announced Thursday.
The action should make it easier for those consumers to obtain credit in the future, McGraw said.
Midland had purchased the charged-off accounts for collection from Wilmington, Del.-based Cross Country Bank, an institution that markets high interest credit cards to consumers with bad credit.
The attorney general filed a lawsuit against Cross Country last year alleging the bank used deceptive marketing techniques and that its collection agency used abusive collection methods. That lawsuit was settled in June.
Because the accounts purchased by Midland were originally procured by Cross Country, McGraw's office had concerns about the collection of them and requested that Midland close all of the accounts with a zero balance.
Midland also agreed to notify credit bureaus to delete all references to the accounts from the credit records of the consumers.
"I commend Midland for promptly doing the right thing after we brought our concerns about these accounts to its attention," McGraw said.
He said consumers "will no longer be denied access to new credit as a result of these accounts."
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